Your advertised price (asking price) is established and interested buyers are submitting offers. You have by now determined the minimum price you will accept in order to sell (selling price) and have compared your property to similar properties currently for sale in your area. You are confident in the value of your property and ready to negotiate.

NEGOTIATING AN OFFER

When negotiating the selling price of your property it’s vital to remove the emotional attachment you may have to your home. Remember that the buyer’s aim throughout the negotiations is to pay as little as possible for your property, and your aim is to sell for as much as you can.

There are 3 key questions interested buyers may ask the seller during the private sale process:

1) Why are you selling?

This question can help the buyer determine how quickly you want to sell.

Example: If you tell the buyer you’ve found another property to buy or are moving overseas in a few weeks, the buyer will know you have a time limit.

2) How long has the property been on the market?

This question can help the buyer determine if the property is overpriced and your eagerness to sell.

Example: If your property has been on the market for eight weeks or more, buyers may assume the property has not sold because the asking price is too high, the property may have a fault or you are not in a hurry to sell until you get a specific price.

3) What is your lowest acceptable price?

This question can help the buyer determine what price they will offer (if any).

Example: Not all buyers would be expecting a straightforward answer to this question. You can give the buyer a hint and say “I may take around the $350,000 mark” or “I may take between $345,000 -$355,000”.Even if you give the buyer a precise bottom price they will never offer above this price and may even offer below.

THE KEY TO A SUCCESSFUL SALE IS FINDING THE MIDDLE POSITION… A PRICE THE BUYER IS WILLING TO PAY AND THE SELLER IS WILLING TO ACCEPT.

Common mistakes sellers make when presented with an early offer:

The seller might feel:

• It’s too soon to accept an offer
• The property may be priced too low

Common mistakes sellers make when a lower than expected offer is made:

• The seller may feel offended by the low offer
• The seller may not respond, believing the buyer is not serious

Some points for sellers to consider during negotiations:

• Serious buyers can be the first to make an offer. They’ve been looking for a while, have their finance pre-approved and they’re ready to buy.
• You can be flexible on the price because you’re saving on the agent’s commission, and buyers may expect you to pass on some savings to them. A lower than expected offer may be submitted, even by a genuine buyer, so go back to the buyer with your counter offer.
• A counter offer is a reply back to the buyer who has presented an offer. The counter offer may include the price you will accept and YOUR terms and conditions of the sale.
• A counter offer can go back and forth numerous times until a sale price, including the terms and conditions of the sale, is agreed. This may take days to finalise and patience may be an essential part of the negotiations.
• An offer can be made subject to certain terms and conditions such as:
  – subject to finance approval
  – subject to an extended settlement period
  – subject to a pest and building inspection report
• If you priced your property correctly, receiving the full advertised price is not uncommon and the offer should seriously be considered.
• If you priced your property lower than other properties, you may receive numerous offers that will ultimately drive the selling price up. So there’s minimal risk in pricing your property too low.
• If you over-priced your property, you risk scaring genuine buyers away and your property may remain on the market longer than necessary.
• An offer can be negotiated and submitted verbally or in writing.
• Submitting an offer verbally during negotiations enables an interested buyer to tell you in detail what they like and dislike about the property.
• An offer is not lawfully binding on the prospective buyer or the seller until the Contract of Sale has been signed by both parties.
• It’s a good idea to encourage buyers to confirm their offer in writing by asking them to complete your MasterSell Offer to Purchase form.
• When an interested buyer completes this form, they will specify their details, their solicitor’s details and the terms and conditions of their offer (if any).
• If a buyer has stipulated on the form that they require your response by a particular date, you are not required to respond immediately.
• If you receive a low offer or do not accept the terms and conditions of the offer, ensure you go back to the buyer with a counter offer. Remind the buyer about the positive features of the property, how much you’ve enjoyed living there, the convenient location etc.
• The property will always remain on the market while you consider offers.
• You can negotiate with the buyer to lessen, extend or waive the cooling-off period completely.
• There is a cooling-off period after the contracts have been exchanged in most states except Tasmania and Western Australia.
• A cooling-off period means the buyer can change their mind about buying your property, but must inform you in writing.
• Once you accept an offer, the next step in the private sale process is to notify your legal representative.

CONTINUE TO STEP 7